BoG revises foreign exchange rules

The Central Bank has announced that owing to certain implementation challenges it encountered after the introduction of rules on foreign exchange operations, it has revised some of its policies.

In a statement issued on Friday in Accra, it said the limit of $1000.00 on over-the-counter foreign exchange cash withdrawal had been removed.

Again, it said exporters shall continue to repatriate in full export proceeds in accordance with the terms agreed between the trading parties, adding that such proceeds shall be credited to FEAs and converted on need basis.

“FEAs and FCAs will continue to be opened and operated as they were before the Notices of February 4, 2014. Except for transfers from foreign exchange accounts (FEAs) to foreign currency accounts (FCAs) which are still prohibited, all other transfers between accounts are permitted.”

The Bank of Ghana further noted that FCAs shall be fed only with unrequited transfers such as transfers from abroad for investment or embassy transfers.

“FEAs shall be fed with foreign exchange generated from activities in Ghana such as proceeds from exports of goods and services.

The threshold for transfers abroad without initial documentation remains at $50,000.00.

“Where documentation in respect of a transfer remains outstanding, any subsequent import transaction by an importer, irrespective of value, shall only be made on prior provision of documentation required for the current import transaction.”

By the foregoing, it said importers, who used non-cash instruments (plastic cards), might continue to load up to $50,000 to meet their legitimate needs abroad subject to the necessary documentation requirements.

Furthermore, it mentioned that foreign currency denominated loans may be granted by resident banks to their customers subject to their own internal procedures and processes and in compliance with the risk management guidelines of the Bank of Ghana.

Cheques and cheque books may also be issued by banks to holders of FEAs and FCAs.

It would be recalled that the Bank of Ghana, on February 13, 2014, issued a notice to clarify the aforementioned notices.

On June 16, 2014, it also issued another notice to amend the rules on foreign exchange operations.

It said the Ghana cedi remained the sole legal tender in Ghana and therefore pricing, advertising, invoicing, receiving and making payments for goods and services should be done in Ghana cedis unless otherwise authorized by the Bank of Ghana.

“Existing measures, which are not amended by this notice, shall continue to remain in force.”